‘Bullish on China’: US brand Levi’s bucks retail headwinds with localisation strategies
US apparel retailer Levi Strauss & Co says it is bullish on China and plans further investment and new store openings in the market, riding robust growth driven by young shoppers. While the consumer market in China remains challenging for many multinationals, with a host of foreign brands shuttering stores amid rapid market shifts and broader consumption headwinds, Levi’s sees itself as an…
Levi Strauss & Co, the US apparel giant, remains confident in China's potential, despite the challenging consumer market faced by many international brands. The company's executive vice president and chief commercial officer, Gianluca Flore, expressed his belief that China would become a significant part of the company's global business. He emphasized that they are "bullish" on the market, and that macroeconomic shifts do not pose a direct threat to Levi's.
More than 60% of Levi's business now originates outside North America, with Asia contributing a small yet important share. In the third quarter, net revenues in Asia grew by 10% year on year, marking three consecutive quarters of double-digit growth. Flore attributed this success to a strategy that combines a global framework with strong local adaptations in product offerings and marketing.
The company's core consumer base in China is described as fashion-forward and trend-conscious, with an average age of 20 to 30. Flore highlighted the importance of tailoring marketing and products to local preferences while remaining open to flexibility and agility. The company follows a key city strategy that focuses on first-tier cities and cooperates with local partners in operating some franchise stores.
China's retail landscape is marked by a rapid pace of change, and foreign retailers must adapt to stay relevant. Wang Tianshi, an analyst at the Shanghai-based LeadLeo Research Institute, suggested that brands must reduce global sourcing, expand locally developed products, and keep up with shifting consumer trends to transform their brand equity into sustainable competitive advantages.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
